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European performance and structure. The performance of European business. Europe’s growth problem. Three decades of low growth Europe faces a competitiveness problem Where competitiveness is …
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Europe’s growth problem • Three decades of low growth • Europe faces a competitiveness problem • Where competitiveness is … • “the state of being competitive in a context of global markets … reflecting the capability of the state (and of the economic agents within it) to gain and sustain market share.”
World Economic Forum • WEF outlines the core set of drivers across three areas: • Basic requirements (ubiquitous to all activity) • Efficiency Enhancers (to aid market process) • innovation and sophistication enhancers
European competiveness • European Competitiveness shows North– South split • These lie at heart of problems of Euro crisis • This is supported by ‘ease of doing business’ index • Issue is lack of reform
The European MNCs • Despite relative decline – EU MNCs still key global players • These are often in extractive industries • Often ex-incumbent • Little by way of new economy MNCs
European state owned enterprises (SOEs) • SOEs relatively important in EU especially in France • Reflect legacy of state intervention • Privatization of SOEs uneven across EU • Reflect different variety of capitalism across EU
The European SME • 99.8% of EU businesses • But often neglected • Keen as core source of change in EU • EU has uneven entrepreneurship culture