The EU is well positioned to develop a new agenda for innovation and economic growth
Within the EU, the search should be on for policies that help real companies, operating in the real economy, to design new products, to improve productivity, to increase return on capital investment and to generate sufficient cash for innovation and new investment. These policies, all focused on the creation of economic value rather than short term accounting profits, would provide a counterweight to the financial economy and the destruction of economic value inherent in many of its practices.
These policies can capitalize on the many competitive advantages the EU27 enjoys vis-a-vis other trading blocs. These advantages help to explain why European enterprises are as profitable as their US counterparts despite the obvious advantages enjoyed by the latter: a large homogeneous home market with one legal and fiscal regime and one de facto national language.
Many of the EU’s advantages have, so far, not been recognized as such. Obviously, programs designed to reinforce what is already strong are far more efficient and effective than programs designed to remedy weaknesses. They are relatively cheap and resistance to change, if any, will be modest.
Following Brexit and the French and German elections, EU integration will receive a considerable boost, particularly in the financial and economic domains. This will provide a unique opportunity to draft a new European Innovation and Economic Growth Agenda, far removed from previous programs based on macro-economic targets and instruments, i.e. the Lisbon agenda and its many successors which never delivered.
Get in touch
In 2018, Donald Kalff will tour the major European cities to discuss his ideas with policy makers and leaders of enterprise. If you are interested in a meeting with Donald, or if you have any thoughts about the EU Agenda, feel free to get in touch!