The European Commission's "EU Competitiveness Compass" outlines a strategy to revitalize Europe's economic standing by addressing innovation gaps, promoting a joint path for decarbonization and competitiveness, and reducing strategic dependencies. This communication identifies longstanding structural weaknesses hindering the EU's growth, particularly in productivity and technological advancement compared to global competitors. To counter this, the Compass proposes a new competitiveness model centered on innovation-led productivity, supported by actions across three key pillars and horizontal enablers. These include fostering a thriving innovation ecosystem, ensuring a competitiveness-friendly green transition, and enhancing economic security through diversified partnerships and reduced reliance on vulnerable supply chains. Ultimately, the document serves as a strategic guide for the EU to regain its economic dynamism, safeguard its social model, and assert its global influence in a challenging geopolitical landscape.

#MEGA - Make Europe Great Again

This IMF working paper investigates the causes behind Europe's lagging productivity growth compared to the United States. Through firm-level analysis, the authors identify performance gaps in both leading and young, high-growth European companies. The paper highlights smaller market sizes and limited access to equity financing as key obstacles for larger firms, while skill shortages and insufficient venture capital hinder the development of startups. Ultimately, the study suggests that deeper market integration and national reforms aimed at resource reallocation and human capital enhancement could revitalize Europe's productivity.

A Nature News article reports on a directive from Trump's team ordering significant government layoffs, which is anticipated to negatively impact science due to associated budget cuts. The piece features insights from scientists within US agencies regarding the potential consequences for their staff and funding. An update notes the National Science Foundation later reinstated some probationary employees. The article also references related content concerning the effects of the Trump administration's actions on research, including grant freezes and the experiences of scientists in environmental agencies.

#MEGA - Make Europe Great Again