There is insufficient investment and spending to drive growth in the euro zone

A comparison of OECD countries shows that the countries with the strongest productivity growth have the highest levels of investment in new technologies and R&D spending. The euro zone has a much lower level of investment in new technologies and R&D spending than the United States. This reflects the difference in economic philosophy between the United States and the euro zone: the United States knows that a high level of investment and R&D spending is necessary nowadays , and that having a high fiscal deficit and current account deficit is acceptable as long as these deficits finance investment and spending that will generate additional growth. On the contrary, the euro zone prefers to limit fiscal deficits and run external surpluses; this choice of economic strategy reduces growth in the euro zone, makes it less attractive to non-resident investment than the United States, and prevents international capital from choosing to flow into the euro zone. The conservatism of the euro zone's economic policy makes it unattractive to investors, since it results in sluggish growth.