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Europe’s economy: Three pathways to rebuilding tru

# Industry Themes

Europe’s economy: Three pathways to rebuilding tru

Europe is bouncing back after a “lost” decade. Business and citizen optimism has returned and eurozone GDP in 2017 expanded at its fastest pace since the 2008 financial crisis. This changing mood creates an opportunity for European political and business leaders to take the action needed to ensure that growth and well-being are sustained in the long term, and that trust in Europe’s institutions is strengthened.

 

Rebuilding trust is critical: even in a time of economic recovery, divergent forces linger, anti-globalization sentiment is gaining ground in a number of countries, and distrust of politicians and political institutions is rife. Business leaders, meanwhile, tell us that they favor “more Europe” but still worry about the fragility of the eurozone. Drawing on research by the McKinsey Global Institute, this briefing explores three pathways where Europe could take concrete action to begin restoring trust while sustaining economic momentum:

 

Restoring economic dynamism and investment for inclusive growth

Capturing the benefits of globalization while addressing the backlash against trade and migration

Embracing automation and AI to drive long-term competitiveness, while addressing challenges from the future of work

Rebuilding trust through tangible improvements on areas of citizen concern—and more

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