Resumen de Reinventing productivity in the European Union: three missing links

Velimir Šonje

• The recent shift in policy focus in the EU to competitiveness and productivity growth is likely to lead to regulatory simplification, the removal of remaining barriers in the Single Market, and a greater emphasis on innovation. This contribution explores the three key ingredients missing from the policy mix that are needed to boost labour productivity growth: improved labour markets; greater fiscal elasticity throughout the business cycle in relation to the labour productivity in the public sector; and the structural accumulation of fiscal space needed to reduce tax burdens