Rebuilding Europe’s Competitiveness

This Report on Rebuilding Europe’s Competitiveness is published at a critical time for Europe, as the region struggles to emerge from one of its most difficult periods since World War II. Recent years have seen stagnating economic growth, rising unemployment leading to social tensions, and sovereign debt crises in several European countries, exacerbated by the fact that the future outlook remains uncertain. There is widespread agreement that the root causes of this prolonged crisis lie in the lack of competitiveness of many countries.

Over the past half-decade, the region has focused its efforts on addressing the most immediate challenges associated with the financial crisis and preventing the disintegration of the Eurozone. However, more recently Europe has started to implement deeper reforms to rebuild competitiveness, paving the way towards a more sustainable path of prosperity. More precisely, several European countries have adopted important reforms aimed at enhancing competitiveness such as measures to make public finance more sustainable, the banking system more reliable and efficient, mend dual labor markets, and increase the efficiency of product markets. Consequent and sustained implementation of these measures will be required in order to ensure their full impact. In this context, galvanizing the support of all stakeholders within society is critical for success.