El Club de Exportadores e Inversores Españoles It has warned about the slow implementation of reforms to improve European competitiveness. According to a Technical Note, the Unión Europea has only implemented 15% of the recommendations of Draghi Report, which exacerbates the growth and productivity gap compared to Estados Unidos.
The warning is based on the Technical Note “European competitiveness in a context of global transformations: structural diagnosis, industrial strategy and implications for España”, prepared by Isabel ÁlvarezProfessor of Applied Economics at the Universidad Complutense de Madrid and director of Instituto Complutense de Estudios InternacionalesThe analysis highlights the growth differential between Estados Unidos and Unión Europea It has skyrocketed from 15% at the beginning of the century to the current 30%.
A widening structural productivity gap
Since the beginning of the 21st century, the economic model of the UE It shows signs of exhaustion, with a clear slowdown in growth and a loss of productive dynamism compared to other commercial giants. The benchmark report, known as Draghi ReportHe concludes that this trend is not due to circumstantial factors, but to a structural divergence in productivity, which currently places the Unión Europea around 80% of the productivity of Estados Unidos.
"It is worrying that this gap, far from narrowing, has widened after the pandemic, revealing itself as one of the main bottlenecks for the European economy and competitiveness.", Points out Álvarez in the document. The international competitiveness of Europa and, by extension, of EspañaIt is being diminished, directly affecting the external sector, which has traditionally been an engine of growth.
Key indicators of the EU's loss of competitiveness
| Indicator | Current Data | Context |
|---|---|---|
| EU vs. US Growth Differential | 30 % | It was 15% at the beginning of the 21st century |
| EU vs. US Productivity | Up to 80% | The gap has widened after the pandemic |
| Application of the Draghi Report | Up to 15% | One year after its presentation |
| Industry in the GVA of España | 16 % | Far from the 23% of Alemania and the EU target of 20% |
| Investment in R&D in España (% GDP) | 1,50 % | EU average: 2,3%; Corea del Sur: >5% |
The causes of European stagnation and inaction
The Technical Note identifies the weak technological and digital capacity from the UE as one of the main causes of this slow growth. A revealing fact is that no European technology company created from scratch in the last 50 years exceeds $100 billion in market capitalization, while six US giants have valuations exceeding $1 trillion.
El Draghi Report He attributes the loss of dynamism to structural imbalances such as:
- Weakness in innovation.
- Financial fragmentation.
- Demographic aging.
- Strategic dependencies in key supply chains.
- Low productivity across the board.
To reverse this situation, the report proposed measures such as the development of a genuine single market, greater coordination of industrial, trade, and competition policies, and profound administrative simplification to reduce excessive regulation. However, the response has been lukewarm.So far, there has not been a massive deployment of actions by the UE that go in the same direction as the proposals of DraghiIn fact, when one year had passed since the presentation of the Report, it was estimated that what had been done according to the so-called Draghi tracker was approximately 15%."He laments," he laments. Álvarez.
Implications for the Spanish economy: the challenge of R&D
The Technical Note of Club de Exportadores warns that EspañaDespite the recent strong performance of its economy, it shares most of the structural constraints identified for the whole of the UEThe main challenge for Spanish businesses is to transform the current expansionary cycle into a path of sustained growth based on productivity, innovation, digitalization and green industry.
The document points out that the industrial sector represents only 16% of Spanish added value, a figure far from the 23% of Alemania and the European objective of reaching 20% of GDP by 2030. Furthermore, Spanish investment in R&D remains a weak point, standing at a modest 1,50% of GDP, compared to the EU average of over 2,3% in leading powers such as Corea del Sur, which exceeds 5%. Another worrying fact is that Spanish companies only carry out 55,7% of domestic R&D spending, a lower proportion than in major European economies.
Key points and frequently asked questions about EU competitiveness and the Draghi Report
How does this European inaction affect my Spanish exporting company?
The loss of competitiveness of the UEThe European market, the main market for Spanish companies, is experiencing slower demand growth and increased competition from non-EU players. For exporters, this means they need to redouble their efforts in innovation and market diversification to mitigate the risks of a stagnant European market.
What are the main recommendations of the Draghi Report that are not being implemented?
The areas with the least progress are the creation of a truly integrated single capital market, and the effective coordination of industrial policy to compete with EEUU y Chinaand regulatory simplification. These measures are crucial to facilitating investment, scaling businesses, and reducing the bureaucratic burden that hinders business agility.
What should Spain do to avoid falling behind in this race for competitiveness?
To EspañaThe challenge is twofold. At the national level, it is urgent to significantly increase public and private investment in R&D, strengthen the industrial sector, and commit to digitalization. At the European level, businesses and institutions must push for the swift implementation of the structural reforms proposed by the Draghi Report, since Spanish growth is intrinsically linked to that of the whole of the UE.
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