Europe’s socio-economic models in competition with world big powers, says latest “ranking of all rankings” report
In spite of today’s incremental environmental, sanitary and migratory crisis, Europe holds its rank as top-tier destination for businesses and investors, according to Eight Competitiveness Report 2021produced by Eight International, a global organization of independent transaction advisors. The research further indicates that amidst today’s global instability, assessing economies according to traditional financial
models falls short of providing insight into their fitness and resilience. Also, Europe, as the most integrated and globalized actor on the international scene, should be considered as a collection of complementary regions who can draw singular strength from increased
Pascal Raidron, Managing Partner of Eight Advisory and President of Eight International said:
“As individual actors, European countries are ill-equipped to become global leaders. Every time a European country or region profiles itself in opposition to its neighbors, they miss the opportunity of establishing themselves on the world market. Only those who can allow themselves to see Europe as a single economy rather than a sum of countries, will see a global player who can truly compete with the other big powers of this world.”
Alexis Karklins-Marchay, co-author of the report, Deputy Managing Partner at Eight Advisory and Secretary General at Eight International said:
“If the health crisis has taught us anything, it is that standard economic and business models no longer suffice to measure national resilience. Social security, political efficiency, health safety, sustainability, innovation and data protection are just some of the factors that will determine an economic actor’s fate on the international markets.”
Key take-aways of the report:
Europe as the next big power
If Europe were to be a country, it could definitely rival the likes of China and the United States. Europe is the second largest economy in the world, it ranks first in the ranking of universities and is the third biggest supplier of companies to the Fortune Global 500. The conclusion is clear: a united Europe would truly be able to compete with the other big powers in the world. This will prove to be important during the geopolitical shifts in the coming years. The following years will be determined by the economic recovery of the pandemic, geopolitical tensions, and climate change. During these crucial times, Europe must step up and take on its responsibility as
the world’s next big power.
Global competitiveness is not another term for cheap labor or low taxes. It’s a unique blend of individual freedoms and collective decision-making, of entrepreneurship and social protection.
Different is beautiful
Within Europe we look at different economic models – Benelux, British Isles, Viségrad, Nordics, Med7 as well as DACH (Germany, Austria and Switzerland). Not a single economic model tops each and every ranking. DACH is a very advanced and innovative region. The British Isles have a favorable business environment and the Nordics score well on political and social stability. The conclusion is clear: European societal models are clearly complementary and every European region has its own characteristics – as is the case in countries such as China or the United States. We should embrace those differences and explore how to turn them into an advantage.
The Eight Competitiveness Report 2021 contains comprehensive insight and understanding of the performance of eleven countries in detail and over time. This year they comprise the European countries of Belgium, France, Germany, Italy, the Netherlands, Poland, Spain, Switzerland, the UK, as well as the strategically significant economies of Russia and India.
Today’s uncertain global economic landscape asks that analysis of economic resilience and business performance be aggregated into a multifactor system combining business environment, political and social stability, education and quality of life. Eight International’s report is unique in that it uses 25 authoritative reports to do this. The report which is now in its 5th fully international edition was first published in 2013. It continues to gain traction in senior Government and policymaking circles. It functions as an early screening of expected economic policy challenges for European countries as well as a comprehensive analysis of the international economic playing field.