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ECB’s Lagarde: Europe is falling behind in innovation and productivity compared to the US

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European Central Bank President Christine Lagarde has sounded the alarm on Europe’s lagging innovation and productivity, stressing the need for urgent reforms to remain competitive with the United States. Speaking at a forum, Lagarde highlighted that Europe faces a significant gap in technology adoption and investment compared to its transatlantic counterpart, which could hinder long-term economic growth.

While the U.S. continues to surge ahead in sectors like artificial intelligence and green energy, European industries remain slower to adapt to technological advancements, partly due to fragmented regulatory systems and lower R&D spending. Lagarde emphasized that fostering innovation and improving infrastructure are critical steps to reversing this trend, urging policymakers to act swiftly to enhance competitiveness on the global stage.

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