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uA debate has began between economists in these columns in regards to the relative performances of the United States and the European Union (EU). Gabriel Zucman asserts, on December 17, 2025, that the EU has not “dropped out”; François Bourguignon responds, on December 23, 2025, that “the heart of Europe is getting poorer from year to year” : it’s particularly the economies of the latest Member States which have continued to develop at a big charge.

Comparing the EU and the United States comes up towards two limitations. On the one hand, these two teams current very totally different socio-economic fashions: public spending is considerably greater inside the EU – 49.2% of gross home product (GDP) in comparison with solely 39.1% within the United States – and inequalities are a lot greater within the United States. Above all, a big a part of the financial and social selections inside Europe nonetheless fall to the Member States (budgetary and tax coverage, social safety, training system, and so forth.).

We should subsequently additionally have an interest within the variations which exist between the States of the Union themselves, and which aren’t solely as a result of catch-up from which latest members within the east of the continent have benefited. Some older members have truly fared higher than the others, when it comes to GDP per capita, total hourly productiveness, and CO emissions.₂or inequalities.

At the start of the Nineties, the financial efficiency of Western European international locations was comparatively homogeneous and near that of the United States. Some thirty years later, the hole between the United States and the European Union has widened, however what is maybe extra fascinating is to notice {that a} clear divergence has emerged inside the international locations of Western Europe themselves.

Two teams stand out specifically. In the primary (Germany, Austria, Belgium, Denmark, Netherlands, Sweden), performances have typically adopted these of the United States: GDP per capita (adjusted for inflation and variations in lifestyle) has reached a degree similar to that of the United States and it has, generally, elevated by 50% to 60% since 1990 (and even by 65% ​​within the Netherlands!), which is near the American efficiency (+ 70%).

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