EU was leading productivity growth in the early 90s, even more than USA and it was almost 3x of the emerging markets.
Europe has experienced a significant slowdown in labor productivity growth. Since the financial crisis of 2009, productivity growth in the Euro Area has been notably lower compared to previous decades, with annual growth rates sometimes dipping below 1%.
This decline has been particularly stark when compared to the United States, where productivity growth has been more robust. For example, from 2010 to 2023, EU productivity increased by only 5%, while US productivity surged by 22%.
it is important to see the Onset of the Internet in 90s coincides with this change in trends, given we are now at similar inflection point with AI, where Europe is loading regulations and USA is loading innovation, this could be even more painful moving forward
A good pair trade will be Long USA and Short Eu etfs (no financial advice)
ALT https://www.ecb.europa.eu/press/key/date/2016/html/sp161130_1.en.html