Over the last seven to eight years, since the start of the crisis, there has been a substantial reduction in the EU’s growth potential.[9] According to the latest estimates, the annual
growth in potential output of the EU fell from slightly above 2 per cent ten years ago to below 1 per cent currently.[10] Besides the long-term demographic developments,[11] the medium-term slowdown in the activity can be attributed t
o weak productivity gains and the slow accumulation of capital.[12] The role of capital formation (including RD) as a dri
...[+++]ver of growth has been limited in recent years, as the investment ratio remains substantially lower than a few years ago in almost all EU countries.[13]