Draghi Report, Scope Ratings Analysis: Political Stalemate and Productivity Slow European Growth Prospects

Draghi Report Scope Ratings Analysis Political Stalemate and Productivity Slow

(Finance) – It is necessary to bridge the gap productivityespecially compared to the United Statesand address political stagnation in key countries such as France And Germany. It is the synthesis of the analysis of Scope Ratingsthe European rating agency, entitled “The Draghi report: Europe’s political deadlock and productivity gap are holding back growth prospects”, which highlights the challenges Europe faces in terms of economic growth and competitiveness, highlighting the need to reforms structural.

The analysis conducted by Scope analysts Alvise Lennkh-Yunus And Brian MarlySovereign & Public Sector, highlights how the future of the European economy depends on the ability to promote investments significant and improve the productivityin an unfavorable demographic context and growing geopolitical uncertainty.

THE’political uncertainty in France and Germany, accentuated by the growth of populist parties, is slowing down the reforms needed to improve competitiveness and sustain economic growth. Analysts point out that productivity per worker in Europe is significantly lower than in the United States. In North Europethe gap has increased from 10% to 20% over the past 25 years, while Southern Europe faces an even larger gap. In contrast, in Central and Eastern Europe, the productivity gap with the United States has narrowed over the past 25 years.

To answer the challenges structuralEurope needs additional annual investments of approximately 750-800 billion eurosor 4.5% of the EU-27 GDP. However, analysts point out that the division between decision-making responsibilities at national and European level is the cause of the slowdown in reforms. population Europe’s working-age population is declining, compounded by a lack of sufficient immigration to offset the natural decline. By contrast, the United States is benefiting from increased immigration, which supports its workforce and growth potential.

In conclusion, the analysis conducted by Scope confirms what was highlighted in the Draghi Report on the problems of the EU, and also reiterates how the main problem is the lack of agreement between the national and European spheres on investments to bridge the competitive gap.

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