Despite a more positive global economic outlook and synchronized economic growth in Asia, the U.S. and Europe, the long-term perspective for growth in Europe seems marked by challenges. While mature economies around the word have experienced stabilization in productivity growth, productivity performance in Europe has slowed since the financial crisis. Political factors including the fallout from Brexit, the looming prospect of a transatlantic trade war and an energy system vulnerable to supply disruptions are compounded by economic factors such as an underdeveloped capital market (in comparison with the US), a labour market that faces disruption due to digitization and automation and the success of a monetary policy of cautious normalization. What are the policy and industry responses that should be pursued to guarantee European growth in this climate of uncertainty and disruption?
- To what extent do European policy-makers need to rethink trade, investment and industrial strategies to support future growth in ways that address concerns about the future of jobs and living standards?
- How can the puzzle of increasing growth without increased productivity be explained?
- How can European labour markets maximize the benefits of newer technological innovations such as artificial intelligence, given the different degrees to which digitization drives sectors and industries in European economies?
- How are European policies related to the management, use and cross-border movement of data affecting growth?
- In the event of a trade war, what would be the implications for global growth? Is the EU in a position to defend and advance its interests internationally and avoid a tariff war with the US?