Will euro-zone companies, like US companies, defend their profitability by improving their productivity?

The return to full employment is lead ing to an acceleration in wage s , in the United States as in the euro zone. The marked difference between the United States and the euro zone is that US companies have reacted to the acceleration in wages by restoring their productivity gains, which means that unit labour cost s are barely rising i n the United States and that corporate profitability continues to improve . For the time being, there is no upturn in labour productivity in the euro zone, unit labour costs are accelerating and corporate profitability is start ing to decline. It would be very positive for the euro zone if euro-zone companies, like their US peers, restored their productivity gains, which would increase potential growth and maintain corporate profitability in the euro zone. Is such a development possible? When we look at the corporate modernisation in the euro zone, we see that it remains much weaker than that undertaken by US companies.