Conference Paper

This chapter aims to point out the risks of reducing EU competitiveness by analyzing the indicators of price and cost competitiveness, as well as the structural and technological aspects of competitiveness. Focus is placed on the influence of the world crisis on the competitiveness and export performances of the EU in order to show to what extent the global downturn may have aggravated previously existing needs for the readjustment of the functioning of the Union. Not only has the crisis demonstrated that the problems in the Union had been not created recently, but also that there were urgent demands for new and improved policies in order to regain the strength of competitiveness and performance. The reformulated strategy needs to be based on openness and innovation, with investment in research and development. Long‐term expectations are to be made to comprehensive structural changes in order to overcome structural differences between individual Member States and to increase overall competitiveness. Additionally, trade barriers between individual Member States must be removed if higher individual and aggregate rates of economic growth are to be achieved. It is clear that the effects of a deeper integration of the EU have not yet been achieved, and any expected benefits may not be realized, if the internal and external balance of the Union is not maintained.