The European Union boasted of the sobriquet of lifestyle superpower — it has the highest living and social standards in the world. It is a matter of joke for others who are aware people leaving Europe and moving to Dubai or San Francisco for less tax or better pay. As compared to the US, there is better income inequality, social mobility and life expectancy in the European Union (EU). European living standards are almost on par with those of the USA. Finland is the world’s happiest country ( population 5.6 million).
The issue is despite this, Europe has not become a superpower. Though quality of life is a plus point, but it has not made the geography immune to power politics. Europe has weaknesses as defence-free region, energy importer and technology laggard. Finland is witnessing recession and unemployment is rising. It is not comforting for Europe to see Americans going to Switzerland, with reduced academic freedoms and showing crypto cronyism. The European lifestyle is harder to maintain on weak growth.
Russia has become more aggressive. China wants to export its products aggressively. Europe will have to show dynamism to face this environment. It has to control its deficit and debt. It should focus on strategic investments in defence and human capital. (since the US is no longer a magnet to attract talent). Europe should be resilient and should attract both brains and talent. The gap between productivity of the US and Europe must be reduced. Demark has adopted a policy of hire and fire easily ensuring that there is safety net between jobs. It could lead to an innovating culture in Europe.
The advantage of lifestyle superpower could be lost by Europe unless there is productivity boost. Europe should embrace resilience as its DNA.
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