EU ECONOMY Essay Example | Topics and Well Written Essays - 2000 words

EU ECONOMY - Essay Example nnovative technologies, improving the access to enterprise development capital and focusing on economic reforms that will ensure high economic growth, employment creation and innovation. The member states must commit to reduction of their budget debts, invest in new technologies, diversify their economies, invest in innovative research and stimulate the growth of new enterprises in order for the economic region to remain competitive. In the past five years, member states of the EU monetary block has witnessed harsh economic environment characterised by imminent outright sovereign debt defaults, financial contagion, increase in unemployment, decline in overall economic growth and mistrust among the member states. The EU economy policies must ensure high economic growth, high innovation and improved resilience of markets to external economic shocks in order to attain global competitiveness and ensure high direct investments in the region (Finke 2012). On the other hand, emerging global competitors such as China have export-growth initiatives that improve the competitiveness of their products in the global markets (Finke 2012). China enjoys absolute advantage in manufacture of many products due to availability of highly qualified cheap labor, nearness to the source of raw materials and superior manufacturing technologies. China’s trade and services account for more than 65 percent of the GDP and has maintained a consistent annual increase of GDP over the last ten years. The policy paper is addressed to the European Commissioner and aims at highlighting how EU competitiveness in the global markets is declining due to emergence of global competitors like China and offers several alternative policy measures that should be implemented in order to counter the growing threat. The EU economy is undergoing a turbulent period since its formation since many member states are struggling to recover from the adverse impacts of recent global economic recession and financial