Despite the current economic upswing, the EU is still losing ground in comparison to its global competitors – in particular with its current level of investment in research and development (R&D), which was reached by the US almost 30 years ago.

The EU is also on the wrong path to reach the Lisbon goals, being 3.4 years too late with regard to the targeted 70 per cent employment rate by 2010.

These are some of the findings of a study conducted by Eurochambres, comparing EU and US economies in terms of time distance, and forecasting how many years the EU will take to reach the Lisbon goals, and under what conditions of growth.

Eurochambres is the European Association of Chambers of Commerce and Industry of which the Malta Chamber of Commerce and Enterprise is a full member.

Commenting on these figures, Pierre Simon, president of Eurochambres, said: “We do acknowledge that the EU is experiencing a period of sustained economic growth, and that member states have improved their performance with regard to several economic indicators. However, the results of our study are alarming, and we should beware complacency.”

“The EU would need monstrous yearly performances to reach the current US levels by 2010. We call on political leaders, gathering in Brussels this week, to reinforce the focus on growth and jobs, and to take advantage of the favourable economic upturn to suggest radical structural reforms.”

The study is a follow up to Eurochambres’ first study on “Time Distances”, published in 2005. In two years’ time, the EU-US gap has widened for all economic indicators:

Income (GDP per capita) - the current EU level for income was achieved by the US in 1985. Since the first edition of the study, the time gap has widened by three years;

Employment and R&D - both the current EU levels for employment and R&D investment per capita were reached by the US in 1978. (+3 years and +5 years respectively);

Productivity (GDP per employed) - the current EU productivity level was achieved by the US in 1989 (+3 years).

The current EU level of Internet users per capita was reached by the US in 2002.

The gap for this indicator was assessed for the first time in this edition of the study. The study also suggests that the EU GDP per capita should grow by more than eight per cent annually to reach the 2005 USA level by 2010. And with regard to the Lisbon targets, Europe is well below the ideal path needed to achieve them.

Commenting on these findings, Malta Chamber director-general Kevin J. Borg said it was of the utmost importance that European politicians and business community address this situation if the Lisbon targets are to be met.

“This is more indispensable, for a small country like Malta, which is going through the much-needed transformation to a knowledge-based economy,” said Mr Borg.