We Need To Talk About The EU Productivity Problem

When we think about the economic problems of the European Union, we tend to focus on issues like unemployment, public debt, deficit or GDP growth. Those indicators are grim enough to imagine a problematic future for the old continent. Just think of the Italian debt, Spain's jobless youth or even German pensioners. 

However, there's another problem we should be also worried about: productivity.

This is precisely the core point of the latest podcast series of the Centre for European Reform (CER), the pro-European think tank funded by big banks and corporations that analyzes the EU economic problems and challenges. The five-part broadcast, each part focused on one different aspect, gives a detailed look into Europe's productivity slowdown.

The talks are framed in a CER conference from last November, in which 50 distinguished economists took part. The conversations drop many keys and insights to understand the reality of our economy, but don't expect them to be easy: the experts address complicated topics without a simple answer. (Plus, the low quality of the recordings doesn't help.)

For example, productivity is becoming more and more difficult to measure.

There isn't even yet consensus on why productivity hasn't really taken off since the financial crash of 2008. A possible explanation: it may have more to do with the fact that today's economy is based on big tech corporations that employ only few people but receive huge investments and play a key role in the world's economy.

So is there something governments can do? The answer is yes, but it isn't easy. 

The economists agree that workers should have stronger rights (the decay of many trade unions is another consequence of the lack of growth), there should be more competition policy in markets with high levels of concentration and wealth and inheritance should be more heavily taxed.

We live in a world of ever growing inequality. Either it changes, or our society won't survive.