The EU risks falling behind in technology

Subject

The EU’s tech sector.

Significance

EU stock markets have been staging a sharp rally as concerns over the outlook for the region’s economic and political picture have diminished. However, more substantial gains will be needed if the EU is to recover the ground it has lost versus the United States over the last five years. Such gains will not be easy to achieve, especially in view of the EU’s weakness in the information technology (IT) sector.

Impacts

• Structural change in the EU is likely to remain incremental.
• Macron could boost the French start-up sector and reinvigorate existing businesses -- if he can implement proposed reforms.
• Nonetheless, the EU as a whole needs vigorous action, perhaps through an updated and more realistic Lisbon agenda.