R&D spending, one of the key determinants of competitiveness, is lagging in Europe behind China and the US. China's R&D spending will surpass that of Europe's in four years if current trends continue.
Liberalisation in telecommunications had forced companies to invent new services and technologies that have made people's lives more dynamic. The technology enables people to do more at the same time such as being able to travel and access e-mail from anywhere.
The single currency has been a positive factor helping to safeguard the value of money. The Euro has brought lower interest rates and made investments cheaper.
The progress being made in ending subsidies to farms and to exports is a step in the right direction. New members of the EU have also introduced more business-friendly policies such as lower corporate taxes.
Old continent, new vitality
By Jorma Ollila
think: act, Issue 9
Review by Morice Mendoza