This European Central Bank publication examines the challenges facing European competitiveness, emphasizing the critical role of institutions and the necessity for structural reforms. It identifies low productivity growth, burdensome regulations, and demographic shifts as key issues, exacerbated by global tensions. The article argues that boosting productivity through investment, innovation, and digital/green transitions is essential for long-term competitiveness and resilience. Furthermore, it highlights the need for improved institutional frameworks, better infrastructure, enhanced education, and streamlined regulations to foster a more dynamic and competitive European economy.

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