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Hellenic-Dutch Association of Commerce & Industry

Hellenic-Dutch Association of Commerce & Industry

Member: Society Premium
Since: 27.02.2014

18, Nikolaou Zekakou Street & K. Karamanli, GR-151 25 Marousi, Greece
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HeDa: Europe is leaving large numbers of its citizens behind...

20.10.2016 Share

[Global Competitiveness Report shows a wide dispersion in regional performance on several pillars. The largest gap is in the macroeconomic environment pillar, while Greece has dropped from 81 to 86, scoring 0.72 below the european average.]

Faced with impending Brexit and geopolitical crises spilling over into the region, Europe finds itself in critical condition in many respects. Nevertheless, the region - which includes the EU28, Iceland, Norway, Switzerland, the Balkans, and Turkey - still performs above the global average in terms of competitiveness (4.72 average score in Europe versus an average score of 4.11 among the rest of the world. This is driven by the performance of a group of regional champions, notably Switzerland, which leads the global rankings for the eighth consecu¬tive year. The top 12 includes seven more European countries: the Netherlands (4th), Germany (5th), Sweden (6th), the United Kingdom (7th), Finland (10th), Norway (11th), and Denmark (12th). 

Although the top European countries are pushing the frontier in al¬most all areas, there is wide dispersion in regional performance on several pillars. The largest gap is in the macroeconomic environment pillar, a reflection of the fact that the region has been recovering un¬evenly from the global financial crisis. Accelerating innovation efforts will be crucial to maintain current levels of prosperity and Europe can expect high returns from focusing its resources on nurturing its talent. Among the basic education indicators, the regional gaps are most apparent for math and science education. On attracting and retaining international talent, although one European country (Switzerland) achieves the top global scores, the average for the region as a whole is low; this does not bode well for the creation of a vibrant European knowledge economy. The United Kingdom is currently still the most attractive EU destination for talent, yet the Brexit vote has created significant uncertainty over the conditions under which workers from EU countries will be able to participate in the UK economy in the future. Moreover, university applications from the European Union could potentially drop amid uncertainty over prospective students’ status and subsequent access to the UK job market (see Box 5 on the potential implications of Brexit; note that data presented in the Report were collected before the Brexit vote). 

Other European destinations also seem to be losing appeal. Indeed, some of the largest score drops for France compared to last year were registered for the “attract and retain talent” indicators. 

With unemployment - and youth unemployment, in particular - still high across the region, Europe is leaving large numbers of its citizens behind. Yet good practice examples in this area exist on the continent, with countries such as Switzerland and Denmark striking a balance between high labor market flexibility and strong social safety nets. ✿

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