Europe in 2025 – An attractive region to live and work!
In 2025, the world will be very different from today. If Europe does not respond to the competitive challenges, it may no longer find itself at the forefront of global economic activity. Unless urgent action is taken, there is a real risk that Europe could lose its industrial and technological base, reducing the opportunities for sustainable quality employment. In order to ensure that the EU remains an attractive place to live and work in the future, far-sighted policy decisions will have to be taken. Europeans must mobilise and realise their innovative potential in order to achieve this goal.
The starting position is good. Europe has a relatively balanced economy, with an advanced industrial and technological base and a sophisticated services sector. The EU Single Market provides industry with a large home market that is essential for its ability to compete globally. Its economic policies are generally well-founded, but they are often stifled by uneven implementation and contradicting policies in other areas. Nevertheless, this overall position should give Europe the strength to bring about the urgent and far-reaching advancement required to meet new global challenges and remain an attractive place to live and work.
Europe can progress by reinforcing the contribution of its free market economy to societal welfare. Completion of the Single Market in goods, services, capital, people and knowledge, governed by smart regulation, would ensure that the gains from free and fair competition are maximised and benefit society as a whole. A more environmentally-friendly economy, applying new technologies across all sectors, can create high levels of employment and the wealth required to sustain good quality social provision. To this end, Europe should harness the strength of its companies in the health care sector to enable the provision of high-quality care to its citizens on sustainable public health budgets despite its ageing population. A strong and productive manufacturing and technology industry will drive private-sector investments in promising new industrial activities, providing the basis for sustainable growth and attractive jobs. All Europeans can benefit from the opportunities presented by this new economic dynamism.
Europe’s prosperity and societal well-being can and should reinforce its global competitiveness. The European economy must be characterised by an ever-improving climate for domestic investment, which would also allow it to continue to attract significant levels of foreign direct investment. A growth-friendly business climate and a high level of prosperity and societal well-being should be magnets for the best scholars from around the world. A majority of Europe’s young citizens should benefit from accessible and high-quality education. Increased take-up of studies in maths, science and technology would help Europe meet the needs of strong, innovative companies able to stand high in world performance rankings.
A strong culture of cooperation between business, education and government should be expected. ‘Revolving doors’ between the three sectors could create a shared understanding of the importance of entrepreneurship. This should permit the development of a common agenda, where workforce training, design of regulatory and tax systems and business development all reinforce each other. Europe must continue to boast strong and dynamic companies that flourish as world-renowned innovators. They will provide the solutions that help to tackle societal challenges, including those arising from global megatrends, population growth and demographic change, urbanisation, climate change, globalisation and increasing resource scarcity.
The EU should put itself in a position to shape and lead global developments as a responsible actor. Dynamic European businesses, large and small, are instrumental in achieving this leadership position. Industrial and technological companies should form a strong backbone ensuring the long-term sustainability of the entire EU economy. A vibrant business environment must support their efforts to maximise productivity, enabling them to place entrepreneurship, innovation and research and development at the heart of Europe’s socio-economic transformation.
Europe’s diversity can be harnessed to forge a more self-assured, open and inclusive society. The richness of its peoples, cultures and histories can inspire a new confidence in Europe’s potential to deliver innovations for a globalising world. Europe can transform itself and everybody can benefit. In 2025, Europe’s diversity should be its competitive advantage.
Why an ERT Vision?
How do we get there?
Who is ERT?