EU leaders have just gathered for yet another discussion on how to make Europe’s economy more “competitive”. That’s the wrong target; the aim should be to make the EU more dynamic.
While the EU has suffered big external shocks in recent years – Russian energy, US tariffs, Chinese competition – the core problem is its corporatist economic model, which favours established companies in mature industries over innovative startups in growth sectors like tech.
While many things need to change, at EU level there are 3 big levers for economic reform: deeper integration in the EU’s incomplete single market; lighter-touch regulation for smaller companies and innovative sectors; and increased investment, not least in venture capital.
Read my latest column for Brussels Times.