European Commission fears that 'EU falling behind the US and China'
EU Commissioner for Economy Valdis Dombrovskis (photo: Getty Images)
EU Commissioner for Economy Valdis Dombrovskis, in his interview with Bloomberg, stated that the European Union needs to make greater efforts to keep up with the United States and China.
"We are working to make competitiveness of European economy a priority," he said.
He highlighted structural issues such as the relatively slow productivity growth observed over decades.
"We’re falling behind the US and China in terms of productivity and growth, and we need to address it," Dombrovskis added.
US President Donald Trump spoke at the World Economic Forum on January 23, using his speech to criticize trade partners, including the EU. He slammed the bloc’s regulations and fines imposed on American tech companies, calling them "a form of taxation." He also reiterated his threat to use tariffs to bring manufacturing back to the US, issuing a stern warning to business leaders and politicians.
"It is clear that we need to engage closely with the Trump administration, the EU and US are strategic allies. We’ve been working together for decades," Dombrovskis said.
In January, the IMF updated its forecast for global economic growth. Global growth is projected to be 3.3% in both 2025 and 2026, below the historical average (2000–2019) of 3.7%.
The forecast for 2025 remains largely unchanged compared to the October 2024 World Economic Outlook (WEO) forecast, primarily due to an upward revision for the United States that offset downward revisions for other major economies.
Specifically, the IMF predicts that US GDP growth in 2025 will be 2.7%, while it will be only 1% in the Eurozone. In China, growth is expected to be 4.6%.
