European Central Bank Governor: Europe lags behind America and China in productivity and innovation.

European Central Bank Governor Christine Lagarde said on Tuesday that Europe is falling behind the United States and China in innovation and productivity. She recommended that Europe must pool its resources in areas such as defense and climate, especially as productivity growth in Europe stagnates and the world divides into competing blocs.

Additionally, the European Central Bank Governor addressed the following points:

The European Union specializes in old technologies; only 4 out of the largest 50 technology companies in the world are of European nationality.

The lack of a unified digital market and investment in venture capital hinders technological progress.

• The fragmentation of global trade and competition with China threatens the open European economy.
• The share of the European Union in global trade has declined, increasing reliance on foreign investors to finance technology.
• The slowdown in productivity growth is reducing potential tax revenues, threatening funding for pensions, climate, and defense needs.
• Climate, security, and innovation investments need an annual investment of 1 trillion euros.