A major concern: The low level of potential growth in the euro zone

The euro zone has markedly lower potential growth than other regions, which may have a cumulative negative effect on growth by discouraging investment, which eliminates the leeway to increase incomes or public spending. We therefore seek to identify the possible causes of this low potential growth. Possibilities include: Insufficient investment, particularly in new technologies and in corporate modernisation, which would lead to low productivity gains; Deindustrialisation, given the low productivity in services; An insufficient rise in the participation rate; Low labour force skills; Labour force ageing. The following explanations seem relevant: A shortfall in investment and in corporate modernisation; Low level of skills ; Labour force ageing.