According to European Commission President Ursula von der Leyen, the eurozone is lagging behind other major economies due to a productivity growth gap between EU countries and other nations.
She estimates that the European Union has been trailing other major economies for more than two decades, and calls on lawmakers to take urgent action.
The European Commission President attributes this situation to the persistent gap in productivity growth. Addressing this challenge requires the urgent removal of long-standing barriers and structural flaws that are holding back the EU's progress, she stressed.
The policymaker acknowledges that the EU is falling behind the United States in the field of advanced technologies. Moreover, the European economy is increasingly reliant on strategic resources. China, on the other hand, has caught up with the United States in many areas and is even leading the race for dominance in some sectors. Against this backdrop, Europe appears pale and is "still punching well below its weight" in terms of innovation, Ursula von der Leyen added. According to her, high and volatile energy prices as well as a heavy regulatory burden are to blame.
Earlier, U. von der Leyen emphasized that EU countries must completely phase out Russian gas fuels while simultaneously reducing energy prices in Europe. The head of the European Commission believes that a new era of fierce competition for technology and resources has arrived. In such a scenario, Europe will have to change, she concluded.
