Low investment is constraining competitiveness
There has been a sharp drop in investment since the financial crisis, particularly among the countries worst affected by the debt crisis that followed. While private investment has begun to recover slightly, public investment continues to be sluggish.
In some countries investment rates were unsustainable before the crisis. But investment rates are now too low if Europe is to remain competitive, particularly in new technologies. Both the private and the public sectors have a role to play in this.
Source: Ameco; World Bank, own calculations