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"Running up that hill"

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Diagram: Line chart titled “GDP per capita (in Constant 2015 USD)” showing steady growth from 1990 to the early 2020s for Denmark, France, Germany, the United Kingdom, and the United States, with the U.S. highest throughout and a noticeable dip for all countries around 2020 before recovery. © Lena Marie Hufnagel​/​Institute of Journalism
Can Europe regain its competitive edge? A new analysis highlights Denmark as proof that smart reforms, innovation, and fiscal discipline can deliver strong growth.

As debates over deeper European integration grow more intense, many policymakers argue that only a more unified EU can keep pace with the United States and China. But closer coordination alone will not restore Europe’s dynamism. 

As one of the EU's wealthiest economies, Denmark has experienced a period of economic growth in recent years. Its GDP per capita has kept pace with the United States, while several other European economies were struggling with stagnation after the financial crisis and the Covid-19 pandemic. Pointing to Denmark as an example, Prof. Henrik Müller makes the case that alongside stronger EU-level integration, member states must drive reform and competition at home.

There are three lessons we can learn from Denmark:

  • Growth without limits
  • Winning with ideas, not factories
  • Big state, smart state

Europe’s future competitiveness will depend not only on stronger EU-level integration, but also on decisive action at home. Denmark’s example suggests that with coherent economic strategy and political will, European countries can achieve both prosperity and social stability.

The article provides a detailed analysis of what Denmark’s experience could mean for Europe’s economic future.