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EU closer to reaching job goals, think-tanks say
26 Feb '07
3 min read
Its authors suggest a rise in labour productivity - provided by both structural reforms carried out in member states and a positive economic cycle - has contributed to the EU's economic expansion.
Still, they suggest "governments should take advantage of the current good economy to push ahead with reform, because the framework conditions will probably not be better for years."
The main concerns stem from predictions about European demographics suggesting that between 2010 and 2020 a decline in potential growth is expected.
"To avoid a possible trade-off between productivity gains and employment growth, greater technical progress and more innovation are absolutely essential," argues the Allianz report.
Concerning education, Belgium scores best among the west European countries, with almost 40 percent of the country's workforce boasting a tertiary or higher degree, while Italy and Austria score poorly, indicating less innovation potential and labour quality.
"Education and research alone are not enough for a knowledge-based economy," argue the authors, suggesting that investment on R&D relative to GDP "has not budged since 2000."
Still, they suggest "governments should take advantage of the current good economy to push ahead with reform, because the framework conditions will probably not be better for years."
The main concerns stem from predictions about European demographics suggesting that between 2010 and 2020 a decline in potential growth is expected.
"To avoid a possible trade-off between productivity gains and employment growth, greater technical progress and more innovation are absolutely essential," argues the Allianz report.
Concerning education, Belgium scores best among the west European countries, with almost 40 percent of the country's workforce boasting a tertiary or higher degree, while Italy and Austria score poorly, indicating less innovation potential and labour quality.
"Education and research alone are not enough for a knowledge-based economy," argue the authors, suggesting that investment on R&D relative to GDP "has not budged since 2000."
EUobserver, Belgium
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