EU economy '20 years behind US'

The EU's economic performance is lagging 20 years behind the US, according to a new study presented by a pan- EU industry group.

The Eurochambres study, published on Friday compares EU and US GDP, Research and Development (R&D), productivity and employment and forecasts how long it will take the EU to catch up with the US.

According to the results, Europe's employment rate for 2003 was reached by the US in 1978, and it will take the EU until 2023 to reach US levels.

Europe's R&D investment for 2002 was reached by the US in 1979 -and the study estimates it will take the EU until 2123 to reach US levels.
 
And on production levels, Europe's productivity for 2003 was achieved by the US in 1989 - and it will take the EU until 2056 to reach US productivity rates per person employed.

“The US has a clear economic time lead, even increasing it after 2000.  The current EU levels in GDP, R&D investment, productivity and employment were already reached by the US in the late 70s/early 80s," said Arnaldo Abruzzini, secretary chamber of Eurochambres.

"Even the most optimistic assumptions show it will take the EU decades to catch up and this only if there is considerable EU improvement.”

EU industry groups called on EU leaders to take "personal responsibility for delivery in Lisbon" and urged them to introduce National Action Plans to be reviewed every year.

"The Summit must show real political dedication to achieving 3 per cent growth per annum in order to create an additional 10,000 jobs over the coming 5 years," said Abruzzini.

José Manuel Barroso's Commission has made econonic growth and jobs a prioirity of his five year mandate.

EU leaders will meet in Brussels on March 22 for the Spring Summit which will focus on the mid term review of the Lisbon Agenda - the EU's target to be the world's most competitive economy in the world by 2010.

• Previous article
• Next article