Is labour replacing capital in the euro zone?

One might think that the stagnation and then decline in labour productivity in the euro zone is due to a substitution of labour for capital, which would cause labour productivity to fall and capital productivity to rise in the euro zone. A substitution of labour for capital would be a normal development if: The relative cost of labour compared with capital was falling; we can see that this has been the case since 2019; Capital productivity had been rising since 2017; in reality, capital productivity has been falling since then. We are probably seeing the effects of an overall decline in the efficiency of the economy (a slowdown in total factor productivity) which implies a decline in both labour productivity and capital productivity.