المجلة الدولية للاداء الاقتصادي
Volume 9, Numéro 1, Pages 1-19
2026-06-30
Can Europe Maintain Its Competitiveness In A Global Economic Landscape Dominated By The United States And China? Structural Analysis, Comparative Data, And Strategic Outlooks
Authors : Cherfi Sofiane .
Abstract
This article analyzes the European Union’s ability to preserve its economic position in the face of the dominant dynamics of the United States and China. We will address a set of recent macroeconomic data (Mario Draghi’s report in 2024), the figures from the OECD, Eurostat, and the IMF to show that the EU is currently experiencing a decline of a structural, multi-dimensional nature. The overall productivity of the European Union’s factors of production is stable and faces a persistent shortage of investment in research and development (R&D) and in capital and digital capital. The EU’s dependence on energy and technology is increasing. Exposure to protectionist measures is growing; the GDP gap between the United States and our continent has doubled over two decades, rising from 15% to 30% in 2023. Spending on research and development in Europe amounts to 2.13 percent of GDP, well below the 3.14 observed in the United States (more than one and a half times 1.6). This situation weakens the Eutrope’s ability to maintain its position as a leader in the fields of technology. In this article, we will analyze the reactions and institutional responses at the European level through Mario Dragui’s report, the competitiveness compass, the agreements on trade with Mercosur and Mexico, while considering their limitations. Our finding concludes that European competitiveness is still present but maintaining it, politically, financially, and industrially requires a common political push on a scale unprecedented since the Marshall Plan.
Keywords
European competitiveness ; economic lag ; R&D ; protectionism ; digital transition ; industrial and trade policy ; economic geopolitics Policy international
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