Regaining our competitive edge

POLICY paper

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Competitive edge landscape

Renew Europe’s ten-point plan for a competitive and prosperous European Union in a fragmenting global economy

The warning signs are flashing. Europe is losing its competitive edge compared to economic actors, such as China and the US. The US has shown higher resilience to economic downturns and a higher capability to resume growth fastly. Prior to 2008, the U.S. economy was approximately 90% the size of the EU's economy. By 2022, the situation has reversed, with the EU economy being 80% of the U.S. economy in absolute terms. Foreign direct investment inflows to the EU are falling, while they are increasing in the US. Growth projections in the EU show a flat line. Business surveys show Europe is becoming less attractive

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