Policy publication in cooperation with NEOS Lab. It examines why Europe is falling behind in productivity and competitiveness and sets out a clear reform agenda to reverse this trend. The publication argues that a future-proof European economy rests on three pillars: a fully functioning Single Market, stronger competitiveness driven by innovation and cost efficiency, and open economic sovereignty that reduces critical dependencies without protectionism. It concludes with targeted policy recommendations to close the productivity gap, strengthen industry, and safeguard Europe’s social and economic model in a more contested global economy.

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