Europe’s Competitiveness Challenge: Pathways to Renewed Growth

There is a growing awareness—in Europe and elsewhere—that the EU’s competitiveness and business climate is in decline. Weak economic indicators and Europe’s lackluster competitiveness in sectors including technology, energy, and manufacturing have pressured policymakers to examine how to improve Europe’s standing in global markets.

A new report from the U.S. Chamber, "Europe’s Competitiveness Challenge: Pathways to Renewed Growth," outlines recommendations to tackle Europe’s competitiveness crisis and strengthen its position in the global economy.

In short, Europe suffers from excessive regulation stifling growth and investment—and cannot regulate its way to innovation. Within this context, concrete action should be built around the following five pillars:

1. The enormous scope and complexity of EU regulation disincentivizes investment and diverts resources away from innovation or growth and towards compliance.
2. The EU Single Market is one of the EU’s primary resources.
3. The EU will need to adopt a digital transformation of the economy that can embrace innovation, increase productivity, and deliver cross-border digital services.
4. Openness to trade and investment is the cornerstone of the EU’s prosperity.
5. The EU must bolster long-term energy security and take steps to reduce energy costs to build industrial resilience and competitiveness.

The success of both EU and U.S. businesses is mutually reinforcing. The EU has historically demonstrated an ability to pursue strategic and bold action to restructure its market and economy. It must now recommit to policies that will build the case for private investment, reinvigorate competitiveness, and deliver on the twin objectives of digital and energy transition.

Download the full report below to learn more.