European Competitiveness Report: Addressing Productivity Gaps with the U.S.

On September 9th, Mario Draghi, a former prime minister of Italy and former president of the European Central Bank, released his report on European competitiveness. The report highlights that Europe’s productivity falls behind that of America. It also points out that Europe lacks major global companies.

Rising geopolitical tensions have intensified this issue for European leaders. They have good reasons to be concerned. American companies tend to be larger and more profitable than their European counterparts. This gap is especially notable in the technology sector, where American firms are twice as profitable and over ten times larger than European firms.