The purpose of the report is to assess trends in competitiveness in the EU and consider policy options to address imbalances caused by a lack of competitiveness. The report examines the underlying causes of the crisis in Europe, policy responses and the role of competitiveness as both a cause and a cure. The report takes a broad perspective of competitiveness that includes both price- and non-price components such as financial, labour and product market developments and determines the extent to which these are essential to long term sustainable growth.