As calls grow for Europe to ease up on its austerity drive, a report on global competitiveness argued that cost-cutting on the continent has halted growth and antagonized the population, creating a number of non-competitive economies.
The World Competitiveness Rankings, compiled by the IMD business school in Lausanne, identified the U.S., Switzerland, Hong Kong and Sweden as the top four countries, while European nations have lost ground – not just over the last year, but over the last 16 years.
Professor Stephane Garelli, director of the IMD World Competitiveness Center, said this feeds the ongoing austerity discussion. “While the euro zone remains stalled, the robust comeback of the U.S. to the top of the competitiveness rankings, and better news from Japan, have revived the austerity debate,” he said.
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