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The continent needs investment on a par with the Marshall Plan and a lot more innovation, says the former central banker
GROWTH IN EUROPE has been slowing for decades. Across different measures, a wide gap in GDP has opened up between the European Union and America. Europe’s households have paid the price in forgone living standards. On a per-person basis, real disposable income has grown almost twice as much in America as in the EU since 2000...
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Summary: Mario Draghi emphasizes the urgent need for Europe to boost its competitiveness through significant investment and innovation, akin to the historic Marshall Plan. He highlights the persistent slowdown in economic growth and the widening GDP gap between the European Union and the United States, which has adversely affected living standards for European households, as evidenced by the disparity in real disposable income growth since 2000.
The Marshall Plan, officially known as the European Recovery Program, was a U.S. initiative launched in 1948 to aid Western Europe's recovery after World War II. Draghi's call for similar investment reflects ongoing concerns about Europe's economic stagnation compared to the U.S., where aggressive innovation and technological advancement have driven stronger growth. Policymakers in Europe are increasingly focused on fostering a more dynamic economic environment to enhance productivity and living standards across the continent.
Keywords: competitiveness, investment, economic growth, innovation, living standards
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