Investing.com -- European Union (EU) Economics Commissioner Valdis Dombrovskis has urged the EU to enhance its economic competitiveness in order to keep pace with the United States and China. He highlighted the structural issues of slow productivity growth the EU has been grappling with for decades, which has resulted in the bloc falling behind the two global economic powerhouses.
Dombrovskis made these comments in an interview with Bloomberg Television in Davos, stating, "We are working to make competitiveness of European economy a priority. We’re falling behind the US and China in terms of productivity and growth and we need to address it."
In contrast, US President Donald Trump voiced criticism of the EU during his virtual speech at the World Economic Forum on Thursday. He took issue with the EU’s regulations and its fines on American tech companies, which he referred to as a "form of taxation." Moreover, he reiterated his threat to use tariffs to repatriate manufacturing to the US, issuing a strong warning to executives and policymakers.
Despite this, Dombrovskis emphasized the need for close engagement with the Trump administration, saying "It is clear that we need to engage closely with the Trump administration, the EU and US are strategic allies. We’ve been working together for decades."
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