Eleven major banks in Europe emphasize the need for decisive action and investment to bridge the productivity gap between Europe and the United States.
In a crucial letter addressed to European leaders, representatives from the largest banks in the EU, the United Kingdom, and Switzerland pointed out the significant challenges facing Europe today, particularly the pressing issue of low growth and lack of investment. They highlighted a stark 30% productivity gap that has developed over the past 25 years between Europe and the United States, underscoring that this disparity is not merely abstract but influences strategic decisions and competitiveness in the global market.
The banks argue that the stagnation of the European economy is largely self-inflicted through past policy decisions and stress that reversing this trend requires a new approach. The letter calls for urgent and effective measures that would mobilize private capital, which they believe is the most efficient mechanism to tackle these challenges quickly. Such actions are deemed necessary to foster an environment conducive to growth and innovation.
Recent gatherings, including discussions at the World Economic Forum in Davos, the informal European Council, and the Munich Security Conference, demonstrate a rising awareness among European leaders of these issues. However, the letter suggests that discussions must translate into tangible action plans that prioritize investment and strategic decision-making to enhance economic resilience and address the productivity crisis.
