EU Must Close Productivity Gap with US and China: Dombrovskis

European Commissioner for Economy Valdis Dombrovskis emphasized the importance of closing the EU's competitiveness gap at the Riga Conference in Latvia. He noted that Europe's productivity growth has lagged behind that of the US and China, and that this gap must be addressed through major investment and reforms.

The discussion centered around the Draghi report, published in 2024, which called for significant investment and reforms to improve Europe's productivity, innovation, and global competitiveness. Dombrovskis highlighted the link between competitiveness and security, stating that a strong economy is necessary to support defense efforts.

The EU has proposed a 2-trillion-euro budget for 2028-2034, which includes a new Competitiveness Fund and increased security and defense spending. This move aims to boost Europe's competitiveness while strengthening its economic and security capacity.