Issue The eurozone's swing factor is an uptick in productive investment

Summary

MGI identifies an increase in productive investment as the single most important swing factor that could move the eurozone toward productivity acceleration. The need is large, since Europe's corporate investment trails that of the United States by about $700 billion, roughly three percentage points of GDP. Raising investment would call for competitiveness reforms, which would in turn support faster productivity growth, and the report cites the Draghi report's road map spanning innovation, decarbonization, and defense as one example. Without more investment, the current secular-stagnation trends could persist. That outlook carries the added risk that energy prices push overall inflation higher, a vulnerability that already showed up in 2026.