By Ella Kallai

The productivity slowdown in the EU is well documented. However, what it is less clear is why this is happening. This analysis explores the ‘whys’. Using the most extended time span (1995-2024) for which all current 27 EU countries have available data on Eurostat for detailed sectoral breakdown (64 sectors) the approach to study EU productivity and EU productivity diffusion is based on the distinction between EU frontier countries (EU frontier) and EU follower countries (EU follower)