Economics

Jun 1, 2026 Dalia Marin

Nobel laureate Paul Krugman has a point when he says that European living standards have largely kept pace with those in the US, despite flagging growth and innovation. But this will not remain true indefinitely: restoring Europe's ability to compete at the technological frontier remains essential to its future well-being.

MUNICH – The Nobel laureate economist Paul Krugman has kicked off an important debate by questioning whether Europe is really in decline, as former European Central Bank President and former Italian Prime Minister Mario Draghi argued in his 2024 report on European competitiveness.