Page 4 - Economy_Efficiency and Competitiveness2

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Introduction to the topic

Competitiveness according to the World Economic Forum, is “the set of institutions, policies and factors
that determine the level of productivity of a country”. 1

Efficiency aims to be as productive as possible and thus to avoid wasting energy, materials, money, and
time. Overall, efficiency is the ability to do things well, successfully, and without waste.

What is the relationship between competitiveness and efficiency?

Increased labor productivity results in increased competitiveness of the company on the market. There is
a conviction that money is the most attractive way to encourage workers to work as productively as
possible, but this is not always true.

The efficiency can be treated individually. Whether individual employees perform tasks effectively and
manage their time well directly affects the productivity of the entire company. Productivity is also
interpreted as the amount of the production effect that is obtained from a given means of production.

The Competitiveness Council is working to boost competitiveness and growth in the EU. It deals with
4 important policy areas:

• Internal market - As legislator, the Council is working to remove barriers to the cross-border movement
of goods, workers, capital and services.

• Industry - Combining a horizontal approach with a sectoral approach.

• Research - The aim is to strengthen both the scientific and technical basis of European industry. This
increases international competitiveness and employment.

• Innovation and space - a common European space policy is developed.

The Council, together with Parliament, is taking concrete measures aimed at businesses to increase access
to finance, cut red tape and promote innovation.

1 https://www.weforum.org/agenda/2016/09/what-is-competitiveness/