SUERF Policy Brief Is the lack of public money the reason for Europe

SUERF Policy Brief, No 1025 1 Is the lack of public money the reason for Europe lagging behind? There Was a Turning Point in the Early 2000s? When comparing the historical development of Europe and the USA, the key features are easy to identify (Figure 1). [...] However, when comparing Europe and the USA, the most striking difference is the flow of private capital into entirely new investment activities and the resulting surge in stock prices and stock market wealth. [...] In Europe, the largest firms are concentrated in the fields of medicine and cosmetics, whereas in the US, the dominant firms are high-tech companies (see Figure 3 for the size of top 20 firms and the market caps for old and new firms in Europe and USA). [...] Size of biggest firms in Europe and USA 2002 and 2024 If we examine the development of aggregate stock values, it becomes clear that the key issue lies in the role of the largest firms—particularly the top 20—where the size difference between Europe and the USA is most significant (Figure 5). [...] The views expressed are those of the authors and not necessarily those of the institutions the authors are affiliated with.