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Europe's ICT Investment Lags Behind US, Urgent Reforms Needed

9/23/2025

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Summary

Story summary

Europe’s growth lags the US due to weak ICT investment.
In 2023, EU ICT R&D spend under €20 billion, versus over €180 billion in the US.
Limited capital market integration since the 2015 Capital Market Union hampers investments.
European Commission (EC)'s 2025 Savings and Investment Union aims to improve capital market integration and could boost GDP by up to 1.5%.

History

Historical Context

The Capital Markets Union (CMU) was initiated by the European Commission in 2015 to create a unified capital market across the EU, addressing reliance on bank financing. Despite aiming to attract €2 trillion in investments, the CMU has struggled, with EU ICT R&D investments under €20 billion compared to over €180 billion in the US, contributing to slower economic growth. The 2025 Savings and Investment Union seeks to enhance this integration.

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Story summary

Europe’s growth lags the US due to weak ICT investment.
In 2023, EU ICT R&D spend under €20 billion, versus over €180 billion in the US.
Limited capital market integration since the 2015 Capital Market Union hampers investments.
European Commission (EC)'s 2025 Savings and Investment Union aims to improve capital market integration and could boost GDP by up to 1.5%.

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