The EU Economy 2007 Review provides an in-depth analysis of productivity developments and policies to push Europe's productivity frontier forward. The past two years have seen a renewed acceleration of productivity growth in the European Union, narrowing the transatlantic productivity gap that emerged in the mid-1990s. However, a large part of the pick-up in productivity reflects the cyclical upswing, which the EU has enjoyed in this period. To secure a sustained increase in productivity and compete for economic leadership, the EU must tackle the root causes of slow productivity growth.

The document is an integral element of the Commission's ongoing surveillance of economic developments and policies in the Member States, the euro area and the EU.