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It is not difficult to be pessimistic about the future of European business.
It is not difficult to be pessimistic about the future of European business.
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2025-04-06
20
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It is not difficult to be pessimistic about the future of European business. 【T1】
Compared with the awesome strength of America and the raw power of emerging Asia, Europe is sometimes portrayed as a has-been, excelling in luxury goods, fine food, wines and fashion but weighed down by too many old industries and old ideas. From microchips to microbes, poor old Europe seems to trail in America’s and Asia’s wake.
America enjoys awesome advantages over Europe. It is a huge, truly single market with a relatively youthful, growing population. It is the world’s economic superpower, with much higher productivity than its competitors(though productivity growth has recently been disappointing, and last year was slightly below Europe’s). It has world-class universities that work hand in glove with businesses. Americans have not only won more Nobel prizes, they have turned more scientific advances into profitable businesses than anyone else. Many of these firms have gone on to become the giants of modern business.
It may have been a British scientist, Sir Tim Berners-Lee, working at a laboratory in Switzerland, who invented the world wide web, but America is the home of the Internet and all the business sectors it has spawned. 【T2】
And even where Europe is holding its own against America, it seems unable to retain its advantage. Boeing drifted badly in the 1990s as Europe’s Airbus made strides, but having merged with McDonnell Douglas, the American giant bounced back. It is now taking market share from the Europeans.
America’s economic growth, averaging 2. 5% a year since 2001, has reflected this dynamic business culture, whereas Europe has managed an average growth rate of barely 1.5% over the same period, though the pace has picked up in the past year. Europe’s sluggish performance is often put down to the poor business climate. Rigid labor laws and strong unions make it difficult for firms to fire redundant workers and unattractive to hire new ones. Product markets are not as competitive as America’s, and the single European market has yet to become a reality in areas such as banking and services.
Corporate governance too is variable: transparent and world-class in Britain, but often inadequate in continental Europe. 【T3】
Moreover, European governments like to meddle. France has drawn up a list of strategic industries, including casinos, that it thinks need special protection from foreign takeovers. Even Spain, with its new Anglo-Saxon business culture, tried to stop a German utility from taking over a Spanish power company. Telecom Italia’s attempts to hive off its mobile-phone business became highly politicized.
Many European politicians are fearful about the effects of globalization and the rise of China and India. Certainly Asia has been making itself more strongly felt in Europe in recent years. Japan now has car factories in France and the Czech Republic as well as in Britain, and imports from South Korea’s resurgent car industry have been causing difficulties at Renault and PSA Peugeot Criterion. India’s Tata Group too is planning to export cars to some southern and eastern European markets where they will provide more competition for the traditional west European manufacturers. [br] 【T2】
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答案
即使是欧洲本土能与美国抗衡的产业似乎也难以为继。20世纪90年代,欧洲空客公司大踏步前进,而波音公司发展十分缓慢,但同麦克唐纳一道格拉斯公司合并以后,美国的这家巨型企业迅速反弹,正在抢占空客的欧洲份额。
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