Finland most competitive EU economy
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According to a recent survey conducted by the global economic research company Allianz, Finland is the most competitive economy in the European Union.
In one year Finland managed to overhaul Denmark and Sweden, who held the two top positions last year.
The annual European Growth and Jobs Monitor examines the economic growth, productivity growth, human capital, job creation, future-oriented investments, and economic stability in the 14 largest EU member-states. The competitiveness of an individual country is made up of these six indicators.
The main goal of the survey is not to rank the countries but to find out how well Europe’s economy is capable of meeting the demands set by the so-called Lisbon Agenda.
The EU states signed the Lisbon Agenda in 2000. The principal goal was to make Europe "the most competitive and dynamic knowledge-based economy in the world" by 2010.
According to the results of the Allianz survey, 11 out of the 14 largest EU countries have already met the goals set by the Lisbon Agenda. In most EU countries employment is already running at more than 70 per cent and investment in research and development in relation to GDP is up at 3 per cent.
France, Austria, and Italy are the only EU countries that are not on track to meet the growth and employment targets, while Great Britain and Germany have improved their performance most over the past 12 months.
In the country breakdown Finland comes out best, topping particularly the rankings for productivity growth and investment in human capital, namely education.
According to the survey, Finland is well on its way to even exceeding the Lisbon targets. In the future, Finland’s key competencies will lie in the highly educated and skilled population.
A new significant development happened last year, as for the first time in more than ten years, quarterly productivity was rising faster in European countries than in the United States. As many as 11 European countries recorded faster rising productivity rates than the US in 2007. The development was largely attributable to the fact that the USA was sliding towards recession.
If the economic growth continues at the same rate even in the future, the EU will really become the most competitive and dynamic knowledge-based economy in the world as the Lisbon Agenda predicted, say the analysts who conducted the survey.
The economists at Allianz also point out that it is important to continue the structural reform and budget consolidation that brought Europe this strong economic improvement in the first place, as it is a clear sign that today’s policies are working.
Helsingin Sanomat
