The competitiveness performances of northern European economies and those in the south are diverging- In shaping policies to drive new growth, economies in Europe should focus not just on their national goals but also on the European context and the need to strengthen the single market
Rome, Italy, 30 October 2012 – Europe must bridge its growing competitiveness gap to deepen economic integration and strengthen European cohesion, the Prime Minister of Italy, Mario Monti, told business, government and civil society leaders participating in the World Economic Forum’s meeting in Rome today. “Europe has ceased to be a machine for economic convergence. The competitiveness performances of member states are diverging. There is a competitiveness gap between the dynamic exporting economies of northern Europe and the southern economies. The debt crisis is exacerbating this gap.” Asked Monti: “How can a company in northern Italy survive if it is beaten down because of insufficient labour productivity but also because it pays an interest rate to creditors that is 400-500 basis points higher than that paid by its competitor in Düsseldorf?”