Europe is falling further behind the United States economically, mainly due to low productivity, according to a study published by the International Monetary Fund (IMF).

European tech firms argue they often lack the traditional physical collateral banks require for loans, with their key assets being intellectual property and ideas. Productivity is also hampered by trade barriers between EU member states and the absence of a unified capital market. The study notes that EU rules on trade and capital have a decisive impact on economic growth and market integration.