ECB Says EU Can Close US Productivity Gap
The European Central Bank reports that the European Union could eliminate a third of its productivity gap with the United States by fostering larger companies. ECB staff highlight that fragmented regulations and smaller firm sizes hinder competitiveness across the bloc.
The European Union could close a third of its productivity gap with the United States by matching its corporate scale, the European Central Bank said on Wednesday morning. This structural lag reflects decades of divergence from North American output levels. Closing the gap is central to Europe's ambition to compete in advanced artificial intelligence and global markets.
