Europe’s chance to leapfrog the US as economic leader
WHO will win the long-running economic battle between the European Union and the US? Surprisingly, the Europeans could emerge supreme, writes James Brewer.In any event, Europe should avoid copying the US economic model with its shaky foundation of low savings, excessive consumption and foreign funding in the shape of $2.5trn in US debt issues, companies and real estate owned by the rest of the world.
One of the most radical points is that Europe should spend another 2%-4% of gross domestic product on education and research. At present public spending in this field is equivalent to about $1,456 per capita in the 25 EU nations compared with $2,338 in the US, although for each dollar spent Europe generates more patents and publications than the US. “Such a boost would allow Europe to become world class,” asserts Dr Fassbender.
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