ECB Says Europe's Productivity Gap Could Close with More Large Firms

The European Central Bank has found that if Europe had as many large companies as the United States, it could close nearly one-third of its productivity gap.

This is according to a recent study by ECB staff, which analyzed data from academic studies and found that EU workers produce 20% less output per hour than their US counterparts.

The research also showed that large firms are significantly more productive than smaller ones, with companies having at least 250 employees generating an average of €86,800 in value added per worker annually.

The ECB has backed the proposed 'EU Inc' framework, which would create a single legal structure operating across the bloc and reduce barriers to cross-border business activity.