Growth performance in the European Union

A study from the Robert Schuman Foundation draws a critical picture of the European economy, showing how it has lagged behind other large economies in the past ten years. 

Although the EU remains a desirable place to live and work, offering a comfortable per-capita income to its citizens, Jean-François Jamet of the Schuman Foundation reveals that, if GDP growth per capita had been the same in Germany, France and in Italy as it has been in the United States since 1991, the per capita GDP would be €3,841 higher in Germany, €1,805 higher in France and €3,665 higher in Italy. 

In 2000, European leaders agreed to stimulate economic growth and employment and make Europe’s economy the most competitive in the world, to rival with US and rising economic powers China and India. 

However, the study shows that average GDP growth in the EU between 1996 and 2005 remained low at around 2.37% – a long way from the 9% growth rate in China, but also 1.6% down from the world average. 

Nevertheless, Jamet concludes that EU citizens can be optimistic about their future as economic forecasts for 2006 have been raised to 2.7% for the EU as a whole (see EURACTIV 6 September 2006). These figures remain below those in the US (3.6%), but the gap is starting to close.