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The author is the President of the European Bank of Europe and was the Supreme Minister of Italy. Cover the Future for European Competition
The latest week has given a married reminder to Europe's risk. The Eurozone has grown at the end of last year, suspecting the weakness of home recovery. And the US began to set the main values in its main partners, and the EU after it. This hope is more important to uncertainty about the European growth is given to economic demand for an external demand.
The two main things have led to Europe in this situation – but can take the lead to reinforce the change of mind.
The first is not able to avoid the EU longer to address its resources, especially its internal restrictions and legal restrictions. This is more damage to growth without the US prices can be enforced – and their risk results increase over time.
I Imf Estimated if European Internal restrictions are equal to 60 percent of the payment and 110 percent of the services. This is successfully reduced by the Market where European companies apply: the market in all countries is less than half of the trading level. And as the work changes more than the services, their growing increase is worse.
At the same time, the EU allowed the regulation to follow the best place – the digit for the European technology growth and economic hypocrisy is the study of a large product. The cost of complying gdpr, for example is estimated Reduced reduced revenue for small european firms up to 12%.
Taken together, Europe successfully selected the values within its boundaries and the expansion of the management of the 70 EU GDP sector.
This failure to reduce internal restrictions has also contributed to European commerce. Since 1999, trade as GDP device increases from $ 31 percent to the Eurozone, where the percentage is from 23% to 25 percent. This opening was a valuable thing in the world country. But now it's a search.
Paradox is that while internal obstacles remains high, external restrictions were known as a quick country. The EU companies viewed abroad from the lack of home growth and the importing of the imports.
For example, since in the 1990s, trading costs in services are is estimated To cross 11 percent within the EU but by 16 percent due to the EU import. This helps explain why trade in and out of the EU is about today as a gdp-unpleasant economy completely.
The second thing that holds the Europe is back to tolerate the weakened need, at least from the 2008 World Financial Year. This has expanded all aspects due to barriers. Until troubleshooter, home demand as individual gdp on Eurozone was close to the center of the main economy. Then, they fell down and stayed there. The US is sitting up throughout.
This sound of growing has helped convert the high trade in the infrastructure: The current account in Eurozone is widely changed until 2008.
And the demand has returned to the very weakness area of productivity after money, the unseen way in the US. This can be partly defined as per need for the new cycle. Google Find that policy conducted by the policy has a significant impact on R & D investments, especially disturbing technology.
While the need for demand has different drivers, the most important thing was a friend's policy. From 2009 to 2024, in the US42 Euros, the US government has five more money in the economy against Eurozone.
Both of these benefits and demand-mostly have been made. They work inside its power to change. An unpleasant drive to remove the help problems will help the funny sectors and, by shipping again from your market, to reduce market opening without increasing commercial barriers. New European european Commission's page gives a road map to achieve this.
At the same time, the more use of the financial policy – in high-product investment form – will help carry the signal and send a powerful sign on investment firms over R & D.
But this method requires basic changes in mind. To date, Europe is focused on single or national goals without calculating its integrated costs. To save the public money and support the purpose of debt. The spread of the ordinance was rejected to protect citizens on the new technology. Internal restrictions are inheritance when the nation is a natural nature.
But it is clear that doing the welfare of the European population, or healthy government funds, or the national antercologist, defended by overseas. That is why great change is required.