A New Productivity Strategy for Europe. Bertelsmann Stiftung Inclusive Growth for Europe Policy Paper April 2020.

Neufeind, Max and Priesmeier, Christoph (2020) A New Productivity Strategy for Europe. Bertelsmann Stiftung Inclusive Growth for Europe Policy Paper April 2020. [Policy Paper]

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Abstract

Europe has a productivity problem. In recent years, pro- ductivity growth in many European economies has sys- tematically slowed down and regional differences have widened. The slowdown is connected to decreasing com- petitiveness, fewer prospects for growth and shrinking opportunities for redistribution. Moreover, diverging changes in productivity within the EU endanger the eco- nomic and, ultimately, political stability of the common economic and monetary area. As a result of the current crisis situation, the productivity problem, which up to now has been of subordinate importance in politics, could pose particular challenges for economic policy. Economic policy measures must have a stimulating effect on the business cycle and at the same time always aim to increase productivity. What policies and instruments can reverse the trend and increase long-term productivity in Europe? This paper proposes nine points for a new productivity strategy in Europe. The main pillars of this strategy are: a substan- tially stronger innovation policy, the targeted promotion of technology diffusion and comprehensive, sustainable investments in the future.

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