Isabel Schnabel: Made in Europe

In a time of rapid change, Europe is often seen as a continent slipping behind due to geopolitical rivals, heavy regulations and lagging technological advancements. However, a closer look reveals that Europe is one of the regions with the best quality of life, backed by strong institutions, comprehensive social protection and remarkable adaptability during crises.

To enhance Europe's strength, the focus should be on unlocking the huge potential of the Single Market, which is a crucial asset for the continent. This would provide the scale required to transform innovation into economic growth and enable Europe to compete as a single economy rather than a group of 27 separate nations, thus giving rise to a genuine "Made in Europe" brand.

Europe's high quality of life is backed by solid economic, social and institutional foundations. Measures such as happiness, life satisfaction, social safety nets, accessible public infrastructure, high-quality education and family support contribute to turning economic prosperity into improved living conditions. Europeans also enjoy superior health outcomes compared to Americans, even when considering the much higher healthcare spending in the US.

Additionally, Europe's commitment to democracy, rule of law and institutional balance fosters trust, policy credibility and transparency. These institutions contribute to people's confidence in their future and the fairness of society, even during challenging times. Despite these advantages, Europe's GDP per capita, adjusted for cost of living, lags behind other advanced economies.

This gap, partly due to economic disparities in eastern Europe, is further complicated by factors like shorter working weeks and higher levels of part-time employment, which can impact productivity and income levels. Income distribution in the US is more unequal, with a significant portion of income concentrated in the top 10% of earners.

Consequently, the US economy effectively benefits a smaller proportion of its population compared to Europe, where a more equitable income distribution exists.